Revenue up 24%, earnings up 34% over Q4 2005
Quarterly dividend increases 17%
TORONTO, March 7 /CNW/ - Saxon Financial Inc. (TSX:SFI) reported record financial results for the fourth quarter and year ended December 31, 2006. The Company continued its strong performance with a 24% growth in revenue and a 34% increase in net income in the fourth quarter over Q4 2005. Saxon's assets under management grew 14% during the year, reaching a record $12.5 billion.
"Saxon's strong financial results conclude a year in which we launched new retail products and enjoyed significant wins in the institutional business," said Allan Smith, President and CEO of Saxon Financial. "We are proud of our financial performance. Our dividend increase, the second in the past year, reflects our confidence that Saxon can deliver long-term shareholder value."
Highlights: A year of growth, expansion & investment
The following table summarizes Saxon's fourth-quarter and year-end results for 2006.
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Financial Highlights
(in $thousands, except Three month period Year ended
per share data) ended December 31, December 31,
2006 2005 2006 2005
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Revenue(x) $12,926 $10,396 $48,646 $38,072
EBITDA(xx) $6,129 $4,521 $23,201 $17,608
Net income $3,916 $2,922 $14,732 $10,784
Earnings per diluted share $0.29 $0.21 $1.08 $0.83
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(x) Revenue refers to management fee revenue and excludes investment
income.
(xx) The amount of earnings before interest, taxes, depreciation and
amortization ("EBITDA") is a non-GAAP measure used by management,
investors and analysts to evaluate and analyze the Company's
results. EBITDA does not have a standardized meaning and may not
be comparable to similar measures presented by other companies.
EBITDA is defined as earnings before investment income, interest
expense, income taxes, depreciation, amortization and non-
controlling interest.
- Saxon's assets under management climbed to $12.5 billion at the close
of 2006; an increase of 14% or $1.6 billion over 2005 year-end
results.
- Saxon's Q4 revenue was $12.9 million; a 24% increase over the fourth
quarter of 2005. For the year ended December 31, 2006, revenue
increased 28% compared to the same period in 2005, totaling
$48.6 million over last year's $38.1 million.
- Saxon's net income for the quarter was $3.9 million, up 34% over the
same period in 2005. Comparing year-end earnings, 2006 net income
reached $14.7 million, an increase of 37% over 2005.
- Saxon increased its dividend to $0.21 per common share; an increase
of 17% over the previous quarter.
- Saxon extended its reach into the advisor channel with the successful
launch of deposit notes tied to the performance of the award-winning
Saxon Balanced Fund.
- Saxon's institutional business ended the year with 15 new mandates,
building on the momentum gained earlier in the year with the high
profile wins of Clarington Canadian Balanced Fund, Altamira Canadian
Value Fund and Altamira Global Value Fund.
For detailed financial statements, including management's discussion and analysis, please refer to Saxon's website at www.saxonfinancial.ca.
Conference call
Saxon will host a conference call to discuss these results on Wednesday March 7, 2007, at 11:00 am EST. Please dial 416-695-6120, or toll-free 1-877-461-2816 to participate. This conference call will be recorded and available for replay for two weeks following the earnings announcement at 888-509-0081 and 416-695-5275, pass code: 639876 followed by the number sign.
About Saxon Financial Inc. (www.saxonfinancial.ca)
Saxon Financial Inc. is one of Canada's most respected value-style investment management firms. The Company has three principal lines of business: Saxon Funds Management Limited, which manages a family of high-performing, low-fee mutual funds; Howson Tattersall Investment Counsel Limited, an institutional asset management business; and Howson Tattersall Private Asset Management Inc., a private client asset management business.